Income elasticity of demand; its determinants and applications
Obviously, you all did your homework (except for __________?) and have already watched the above video on XED... hand in your graphs now. We will watch the YED graph together and then discuss both concepts and do some tasks in the packet, and also these questions...
This article Meet the credit crunch winners illustrates a good example of real life YED. And Will price discounting help restaurants survive the crunch? has example of all three concepts of demand elasticities. Her's a song to help remember some of the elasticity concepts...
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Applications of price elasticity of demand
Today we will continue on from yesterday and also consider the objectives above. Tasks:
Here is a case study with some questions to answer... https://docs.google.com/a/aisbudapest.org/document/d/1gWzLuzLCZVxQRZLXki4KEB2AihLBbOCXW7adPSuGm14/edit?usp=sharing Homework (Academic Practice): You need to watch the video at this EdPuzzle link (create a login using your school email address - the class code is figigug) and answer the questions I have embedded into the video. I will be able to see exactly who has or who has not watched the video!! Plus you need to hand some graphs in to me at the beginning of the next lesson based on the final question I have asked you to consider. Also, below is a great 4 1/2 minute summary of PED... an excellent revision tool! Price elasticity of demand and determinants
Task: Look at the following list of products and try to place them in the correct order... most inelastic (least responsive to a price change) on top down to most elastic (most responsive to a price change)... We will discuss all of the concepts you need to be aware of and then do some practice equations and complete some notes. NOTE: I have written some theory notes with some worked examples and some practice questions for all the four types of elasticity here For my short explanation of why elasticity varies along the length of a linear demand curve, you can click this link https://docs.google.com/a/aisb.hu/file/d/0B2DnmWBd6LOCbzJzXzNSY2F2UWM/edit . Also I have posted PAJ Holden's video explanation of all the elasticity topics on this page. You will be given a copy of the following handout which covers the objectives above (as well as some objectives still to come)... but if you lose it then download and print out...
Watch this and answer questions! (Google Form) We will be using page 39-43 of the textbook to go through this plus you will be given some extra tasks to do, including this one. There will be an important summative assessment on this! 1.1 Competitive markets: market equilibrium; the role of the price mechanism; market efficiency10/5/2016
Market equilibrium
This is where we bring demand and supply together... X marks the spot! You will receive a packet of resources that we will use to meet the objectives above.
Includes demand, utility, consumer surplus...
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